As of my last update in September 2021, Hong Kong’s audit requirements might have changed or been updated. Therefore, it’s essential to refer to the latest regulations and consult with a legal or financial professional for the most current information.
In general, most companies in Hong Kong are required to undergo an annual audit of their financial statements as per the requirements outlined in the Hong Kong Companies Ordinance. This includes private companies, public companies, and subsidiaries of overseas companies that are incorporated in Hong Kong.
However, there are certain exemptions and simplified reporting requirements available for certain small companies. For example, companies that meet the definition of a “small private company” may be exempt from having their financial statements audited. In Hong Kong, a company qualifies as a “small private company” if it meets at least two of the following criteria for two consecutive financial years:
1. Total revenue not exceeding HKD 100 million.
2. Total assets not exceeding HKD 100 million.
3. The average number of employees during the financial year not exceeding 100.
It’s important to note that even if a company qualifies for audit exemption in Hong Kong, it still needs to prepare and maintain proper financial records and accounts. Furthermore, certain businesses, such as banks and insurance companies, are generally not exempt from audits, given the nature of their operations and regulatory requirements.
Always consult with a professional or refer to the latest official guidelines from the Hong Kong government for accurate and up-to-date information on audit requirements and exemptions for companies in Hong Kong.